How do I get out of debt??

Question

How do I get out of debt??

Answer 1

keep track of what you spent. make a budget for what you spend your $ on...

Answer 2

Live within your means. Spend less than you earn and use the surplus to pay down your debt.  

Answer 3

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Answer 4

Don't use your credit cards anymore, and start paying it off.

Answer 5

Try this source of a debt consolidation company named http://ezconsolidation.com

They can help you to get out of debts by providing you an affordable debt repayment plan.

Answer 6

Spend less than you earn.

Send the difference between your spending and your earnings to your creditors.

Repeat.

Answer 7

Contact your credit providers straight away and make a payment plan.  1.) Cut up your credit cards.

2.) Consolidate your debt into a single low interest personal loan with a repayment you can afford.

3.) If this is not possible then pay off the card with the Highest interest rate first.

Stop buying things you can't afford. It's simple, if you don't have the cash then you can't afford it.

Learn to save for what you want. Quite often by the time you have saved enough money you realize you no longer want or need the item.

Answer 8

Contact all your creditors and ask for a payment plan that you can afford to pay and stick to it and cut up all credit cards and  mail them back.

Answer 9

1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :

Debt #1 (highest interest): minimum payment+ extra payment

Debt #2 (middle interest): minimum payment

Debt #3(lowest interest): minimum payment

Debt #1: paid off

Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment

Debt #3: minimum payment

Debt #1: paid off

Debt #2: paid off

Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money. Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

Answer 10

Dave Ramsey is a financial advisor who believes in being debt free. He has developed a stratgey for addressing your debts.

You can listen to his radio progam on the local talk radio station. He also has several books.  I highly encourage you to check out his books and radio progam.

www.daveramsey.com

Answer 11

Pay off all of your bills.